Financing your Cobra...Woodside Credit?

[Got the Bug]

Agree with Marc. We've had the discussion about everyone's opinions regarding the pros and cons of financing.

LudicrousSpeed - I couldn't find the post, but I thought Jay at Vintage Motorports had mentioned a finance company that they've worked with in the past.

http://www.vintage-motorsports.com/

Here's the old thread. Based on the condiition of the credit world, the info may no longer be valid:

Financing Availability??

http://www.jjbest.com/

[lovehamr]

No opinion here but I used another car that I own to put up as collateral and got a loan from my credit union @ about 5%. Worked for me.

Steve

[JWheaton]

Truely not meaning to be disrespectful of peoples opinion but reading this thread is difficult. ( iknow don't read it..blah, blah, blah)

The guy asked about financing. He didn't ask to be lectured by anyone with their own financial philosophy. If he can get the money to finance then that is his choice to do so. The big 3 might be in bailout mode, but it does not mean this guy is in bailout mode.

What do we have here as real advise:
1) Bank - doubtful
2) Equity line of credit or loan
3) Loan based on other colateral - currently owned car as an example
4) Bank of Mother, Father, Brother, Sister
5) Save

Good luck to you and your purchase Ludicrous. My opinion... get what you want to and reasonably can afford. You decide how to define reasonablly afford. You will enjoy the car way more than the payments.

[Michael P. Wole]

Has anyone thought about why the nation(world) is in the shape it is in today? It all boils down to the credit/financing issue...Homes being purchased by people that are probably upside down on thier vehicle ('s).
A Cobra kit car is not an investment....you are upside down the minute you pay for and then start putting more money in it(maybe even putting the parts on plastic).
I waited along time to get my toys to play with and pay cash for them.
I paid my mortgage off like I was supposed to.
I paid off mega bucks that was used to finance my business.
I got two kids thru college without loans.
Now it looks like I am going to be paying for mortages that I have not committed to.
AND the best part: now maybe some Cobra's

[RodKnock]

Originally Posted by Got the Bug

Agree with Marc. We've had the discussion about everyone's opinions regarding the pros and cons of financing.

LudicrousSpeed - I couldn't find the post, but I thought Jay at Vintage Motorports had mentioned a finance company that they've worked with in the past.

http://www.vintage-motorsports.com/

Here's the old thread. Based on the condiition of the credit world, the info may no longer be valid:

Financing Availability??

http://www.jjbest.com/

I agree with Doug, been there done that. There are arguments and counter arguments for every position. Just help the gentlemen who started the thread.

[rtstrack]

I used my local credit union. They were very easy to work with
Good Luck

[patrickt]

Originally Posted by rtstrack

I used my local credit union. They were very easy to work with.

I went with Benny's Loan Service http://www.nypost.com/seven/10132008...ark_133385.htm I missed a payment, but my knees are starting to recover now.

[Rick Parker]

I don't want to oversimplify this but most lenders require that an auto loan be collateralized. There are rare exceptions, but they generally do not apply here. The collateral for an auto loan is the Vehicle Title itself, which is then held by the Bank or lender or in some states the title is stamped with 1st or 2nd lien assigned on the title itself. Understand that all kit cars do not have a title created or issued until they become a complete vehicle (assembled with engine, transmission, etc) and are then inspected by the proper authorities as needed, pass emissions testing (if required) and then subsequently licensed. Prior to that they a "just a collection of parts", regardless of the $$ spent on them, their quality or origin. Often from a lenders standpoint, if the proceeds of the loan are to be used for an incomplete kit car, it will (in most cases) be considered a high risk loan, even though it may be secured with alternative collateral (perhaps the title from another car, bonds or other real property) and in most cases carry a little higher intertest rate. If it is a completed car or one with an MSO such as a Superformance, Shelby CSX, or Kirkham that is finished barring final licensing, they can often be treated as a completed car with favorable interest rates.
Some lenders & specialty finance companies have lost their funding sources due to losses and the "Credit Crunch" so it is possible it could affect the availability of this type of loan.

[Great Asp]

Originally Posted by 392cobra

If you can't pay cash...you can't afford it.

Smart use of credit is.......smart.

I know a guy that did real well "borrowing" money.....Bill Gates

E

PS I would not buy a kit car on a loan

[poboy427]

I am probably the poorist SOB on the forum,(state public employee). I barrowed to get my Pantera. I barrowed to get my 66 Shelby GT350 and I paid cash for my SPF roller and built the alum Shelby for it the hard way-out of my back pocket over the course of 3 years. I sacrificed and drove my family trucks and cars to 150,000 miles. My neighbors and co-workers bought and leased cars every 2-3 years and as a result they have nothing in the way of toys. They were smiling and I was smiling.

I have a gorgeous home and put 3 kids through college too.

My secret-I have always bought smart and bought homes and cars that appreciated. I never smoked and curtailed my drinking at age 30. I have 30 yrs at one job and I AM STILL ON MY FIRST MARRIAGE (divorces can be devistating) and I have always been healthy. At age 56 I should have something to show for it.

Don't lecture the man on desire to have an expensive toy. Sure there are guys on this forum who can pay cash for everything. That's not the majority though. If your job is secure and you are willing to sacrifice until your toy is paid for-Go For It. You may have to put up a title of another car. Most banks cringe at the words kit car or componant car. Once the car is done you can always look to refinance under a more suitable rate.

Don't forget most banks will want full coverage insurance year around over the life of the loan. I had an understanding and trusting banker who let me drop liability and collision coverage in the winter months as he was convinced these cars never have seen rain or snow. Oh yeah, honey has to agree to. If she is against it you have a challenge. Good luck.

Ray

[63mercury]

The reason I am scratch building my cobra replica is because (1) I'm retired, (2) the honey said NO to drawing out of retirement savings and (3) because I enjoy a challange. The answer to solving the financial challange was to work 2 days per week to pay for the car,and being an old hot rodder its always fun to scroung parts and dicker at swap meets and other places. This is my 4 cents worth. Enjoy your Cobra.
Carl

[STL Mark]

To answer his question directly - try Capitol One. Worked for me.

[patrickt]

I make a mark on the wall every time there's a post from someone who is going to buy/build a Cobra. After a while, I check back. The results? Nine out of ten never get their Cobra.

[86Sebring]

Looking the current prices, you might not even NEED financing

[Cashburn]

Just to add updated info. We have seen a few more lenders throw their hats in the ring on the financing of "kits", so there are plenty of options now. If you need any info just shoot me an email.

[LudicrousSpeed]

Originally Posted by patrickt

Mark, I'm not going to bug you about it and, frankly, I don't care whether you get yourself in financial trouble or not. But I will offer up some unsolicited "fatherly advice." If you're dead set on getting a Cobra and financing it, why don't you first try putting your down payment into an interest bearing account and then make the anticipated monthly payments for a year in to that account. You can't miss a single payment (for any reason), and you can't touch that money even for emergencies. If after the end of a year that didn't bother you, then pull the money out and get your Cobra. The year will also give you a chance to shake off a temporary bout of "Cobra-Heat" -- if you haven't shaken it off in a year it's probably the real thing.

Actually, thats kinda what I'm doing. We're putting away about 1K per month, half that is dedicated to retirement and is untouchable (Roth IRAs and such), the other half is going into short term CD's and is also semi untouchable for the time being. I'm waiting at LEAST a year to build up the savings, and wait on the market.

There will come a point in the Cobra market that waiting & saving will yield diminishing returns. The prices will eventually start to go up again. Thats the sweet spot I'm waiting for. If I can land a nice used ERA or SPF and only finance around 20-25K tops, I've hit my mark.

I'm in the research phase of the process now, and as I come upon stuff, I'll post a question & see what the responses are. I'm in no hurry to spend a ton of $$$. The neat thing is the more I learn, the more nice folks (owners) I meet, the more I find that I like.

My reality is this: I have an Ego, and I have this insatiable need to go fast & pull Lotsa G's. An inverted flat-spin in a Pitts is my idea of a good time. Unfortunately, My budget will not allow for the cost of an Aerobatic airplane, hangar space, insurance, fuel & maintenance. Plus, nobody in my family really likes to fly, ESPECIALLY the way I like to fly. I gave up motorcycles because, after scraping up the umpteenth motorcyclist from the road, there was no way I was gonna put my wife or kid in the back of my bike again, and riding alone kinda sucks.

The Cobra fills the bill for my Ego & familial involvement, and I can kinda afford it to.

[snakebitekit]

The way most people make their money is by OPM, "other peoples money". As long as you can make the payments without hurting the family budget go for it. I would rather have the money in the bank and use OPM to buy. Besides the interest is deductble.

SBK

[tcrist]

Everything that I have done including buying the kit/sort of ( I bought a previously built Cobra that was taken completly back apart "every nut and bolt" less motor and trans) I paid CASH for. No financing. For me, this is an expensive hobby and it will just cost more in finance charges if you do not pay cash. Save up your money and pay cash for it piece by piece. I have been putting it together for 4 years.
JMHO
Terry

[patrickt]

Originally Posted by LudicrousSpeed

There will come a point in the Cobra market that waiting & saving will yield diminishing returns. The prices will eventually start to go up again. Thats the sweet spot I'm waiting for. If I can land a nice used ERA or SPF and only finance around 20-25K tops, I've hit my mark.

That's certainly reasonable. You don't have to time the market perfectly (be it Cobras, stocks, or anything else); I think prices now are pretty good. And you'll be surprised how quickly you can spend a few grand on absolutely nothing with these cars. Seriously though, I will tell you that I have had (and continue to have) more fun with my Cobra than anything else I have bought in my life. I actually get pleasure from it just knowing that it's sitting in the garage, which is a little nutty -- kind of like posting seven thousand messages to a stupid car forum.

[Gary Stubbs]

A Cobra to me is like a Harley on 4 wheels. Can't remember who said the mostfun I 've had with my cloths on. Probably Bob HOpe. Do it without any regrets though, practice the buyers remorse thing first. BTW ludicrous, inverted flat spins in a pitts are okay with a tail shute and one on your back, how do I know?